Page 65: of Maritime Reporter Magazine (June 2006)

Europe

European yards held their market share in 2005 at approximately 14 per- cent. Germany, taking orders for con- tainer vessels, RoRo and cruise ships, were the most active of the European yards. Akeryards in Finland and

Fincantieri in Italy were also blessed with an increase in demand for passen- ger vessels. A reduction in the ordering activity was noted in most segments in 2005. Of the three largest segments, the number of container vessels was only slighthly reduced from the previous year, which was also the case for car car- riers and cruise ships. However, in the

LPG segment a doubling of orders was recorded. One reason is obviously an ageing fleet, but an explanation can also be found in the LNG market. A number of LNG projects is due for start-up the coming years which will also yield LPG, and this may boost LPG volumes by as much as 50 percent by the end of this decade. A long period of high oil prices has led to an intensified search for oil and gas. Russia has been given a lot of attention in the search to diversify sup- ply of both oil and gas. A majority of new Russian export projects are located in areas with a cold climate which has increased demand for ice-classed tankers and by the end of the year the total ice class order book of tankers rep- resented 14.8 mill. dwt.

Future Prospects

Last year we concluded that a good balance between supply and demand for newbuildings could be expected in 2005. For the year as a whole this turned out to be not far from the truth, and new- building prices ended the year close to the level it started out after having peaked during the summer. In 2006 we expect the down- ward trend in newbuilding prices to continue. The supply side has proved to be very price sen- sitive, and has increased capacity sub- stantially in the past two years. Higher building capacity means that more orders are now required to achieve bal- ance between demand and supply and thus provide continued high newbuild- ing prices. On the demand side, we have been through a 'super-cycle', lasting two years and has resulted in large order books. Consensus forecasts for the world economy indicate that 2006 will remain healthy and should give contin- ued growth in demand in the various shipping markets. However, due to the huge order books we foresee a decline in the rate level for most segments, which would also indicate a slow down in the number of new orders placed. In conclu- sion, we anticipate a downward pressure on newbuilding prices, as building capacity looks likely to exceed demand in 2006.

However, one factor that may post- pone falling prices is the huge order book which should keep yards busy for almost three years.

Some will argue that yards have no incentives to lower their prices as the have plenty of work already secured. Finally, exchange rates may alter this picture if significant changes occurs.

June 2006 65

Bollinger's businesses did very well up until the oil bust of 1984. Louisiana oil industry collapsed and the economy of the area soon followed.

Remembering the initial dream, the

Bollinger's worked harder. They remembered their commitment to the

Bollinger family of workers who needed this employment and the community that was also dependent on this business surviving. Donald "Boysie" Bollinger, son of Donald Bollinger, had worked his way up to become Chairman of the

Board of the organization. He saw the slowdown in the oilfield work coming and took a risk to bid on a U.S. Coast

Guard contract for some new Patrol

Boats. This was quite a chance, but

Boysie new his workers had the skills and could do the job if given the oppor- tunity. Bollinger was awarded the con- tract, which eventually meant they would build 49, 110 ft US Coast Guard

Island Class ships during the oilfield depression. This, along with their com- mercial repair programs, sustained the company moving through the 80's.

Recently Bollinger delivered an addi- tional 66, 87 ft Marine Protector Class

Coastal Patrol Boats for the US Coast

Guard. Since the initial contract with the

US Coast Guard, Bollinger has contin- ued to grow and expand it's commercial and military new construction and repair facilities. The company has expanded to sites from New Orleans, Louisiana to

Texas City, Texas, currently owning and operating thirteen shipyard facilities on the Gulf Coast. Bollinger is the largest vessel repair and conversion company in the Gulf of Mexico region with a total of 40 dry-docks in Louisiana and Texas. (See chart below left).

Need anchors and chains?

G.J. Wortelboer Jr. B.V.

P.O. Box 5003

NL-3008 AA Rotterdam

Tel: +31 10 429 2222

Fax: +31 10 429 6459 [email protected] www.wortelboer.nl

Circle 238 on Reader Service Card

ELASTO VALVE RUBBER PRODUCTS 1691 Pioneer Road Sudbury, ON Canada P3G 1B2

Toll Free: 1-800-461-6331 Tel: 1-705-523-2026 Fax: 1-705-523-2033 [email protected] www.evrproducts.com

Circle 229 on Reader Service Card

Bollinger Shipyards: 60 Years in the Making

Company Established

Bollinger Shipyards, Inc., Lockport, La 1947

Bollinger Larose, L.L.C., Larose La 1978

Chand, L.L.C. 1988

Bollinger Algiers, L.L.C., New Orleans, La 1990 • Formerly Algiers Iron Works & Drydock Co.

Bollinger Quick Repair, L.L.C., Harvey La 1993 Formerly - Avondale Quick Repair

Bollinger Morgan City, L.L.C. , Amelia La 1995 Formerly Mc Dermott Marine

Bollinger Marine Fabricators, L.L.C., Amelia, La 1997 Formerly Mc Dermott Marine Fabricators

Bollinger Amelia Repair, L.L.C. , Amelia La 1998 Formerly - Service Marine

Bollinger Fourchon, L.L.C., Golden Meadow , La (Port Fourchon) 1998

Bollinger Calcasieu, L.L.C., Sulphur, La 2000 Formerly Halter Calcasieu

Bollinger Gretna, L.L.C., Gretna, la 2000 Formerly - Gretna Machine and Iron Works

Bollinger Gulf Repair, L.L.C., New Orleans La 2000 Formerly - Halter Gulf Repair

Bollinger Houston, L.P., Houston Tx 2000 - Formerly - Bludworth-Bond Houston - (Bollinger sold this facility in 2005)

Bollinger Texas City, L.P., Texas City Tx 2000 Formerly - Bludworth-Bond Texas City

Bollinger (Continued from page 34)

The preceding was excerpted from a report was authored by Jørn Bakkelund, R.S.

Platou Economic Research a.s., and printed in The Platou Report 2006.

R.S. Platou is an international shipbroking company established in 1936, which serves the ship- ping and offshore industry world-wide by providing services within chartering, sale and purchase and contracting of ships and offshore units. For additional information, visit www.platou.com

World Shipbuilding Prices (Continued from page 39)

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